MIRA INFORM REPORT

Report Date :

15.09.2012

IDENTIFICATION DETAILS

Name :	GEMPRO HK LTD.
Registered Office :	Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon
Country :	Hong Kong
Date of Incorporation :	05.06.1990
Com. Reg. No.:	13896782
Legal Form :	Private Limited Company
Line of Business :	Importer, Exporter and Wholesaler of all kinds of diamonds and precious stones, etc.
No. of Employees :	2

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
Hong Kong	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

HONG KONG - ECONOMIC OVERVIEW

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Source : CIA

Company name

GEMPRO HK LTD.

Company ADDRESS

Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.

PHONE: 2721 5880

FAX: 2366 8335

MANAGEMENT

Managing Director: Mr. Fazlal Hassan Ahmed

SUMMARY

Incorporated on: 5th June, 1990.

Organization: Private Limited Company.

Capital: Nominal: HK$1,000,000.00

Issued: HK$1,000,000.00

Business Category: Diamond & Gem Trader.

Annual Turnover: HK$65~70 million.

Employees: 2.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Satisfactory.

Company name

GEMPRO HK LTD.

Company ADDRESS

Registered Head Office:-

Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.

BUSINESS REGISTRATION NUMBER

13896782

COMPANY FILE NUMBER

0279583

MANAGEMENT

Managing Director: Mr. Fazlal Hassan Ahmed

CAPITAL

Nominal Share Capital: HK$1,000,000.00 (Divided into 100,000 shares of HK$10.00 each)

Issued Share Capital: HK$1,000,000.00

SHAREHOLDERS

(As per registry dated 05-06-2012)

Name		No. of shares
Fazlal Hassan AHMED		50,000
Abirin Zulaiah AHMED FAZLAL HASSAN		20,000
Ali SADAQ		30,000
		–––––––
	Total:	100,000 ======

DIRECTORS

(As per registry dated 05-06-2012)

Name (Nationality)	Address
Fazlul Hasan AHMED	Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.
Nafeel Ahmed MOHAMED ALI JINNAH	Flat 1, 4/F., 1 Perth Street, Ho Man Tin, Kowloon, Hong Kong.
Ali SADAQ	Flat A6, 14/F., Hankow Centre, 47 Peking Road, Tsimshatsui, Kowloon, Hong Kong.

SECRETARY

(As per registry dated 05-06-2012)

Name	Address	Co. No.
Taxbase Consultants Ltd.	Room 1408, 14/F., Hollywood Plaza, 610 Nathan Road, Kowloon, Hong Kong.	0411324

HISTORY

The subject was incorporated on 5th June, 1990 as a private limited liability company under the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Diamantina Ltd., name changed to the present style on 31st October, 2001.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer, Exporter and Wholesaler.

Lines: All kinds of diamonds and precious stones, etc.

Employees: 2.

Commodities Imported: India, Belgium, other Asian & European countries, etc.

Markets: Hong Kong, Japan, Southeast Asia, Europe, Middle East, etc.

Annual Turnover: HK$65~70 million.

Terms/Sales: CAD, L/C, Advanced T/T, etc.

Terms/Buying: L/C, T/T, D/P, etc.

FINANCIAL INFORMATION:

Nominal Share Capital: HK$1,000,000.00 (Divided into 100,000 shares of HK$10.00 each)

Issued Share Capital: HK$1,000,000.00

Mortgage or Charge:-

Date of Two-Party Mortgage Deed: 17-09-2007

Amount: All moneys

Property: 1/720th part or share of and in Kowloon Inland Lot No. 8219 (Flat A6 on 14/F. and Portion No. 47 of Main Roof of Hankow Centre, 47 Peking Road, 4A Ashley Road and 1C Middle Road, Kowloon, Hong Kong.)

Mortgagee: Public Bank (Hong Kong) Ltd., Hong Kong.

Profit or Loss: Making a small profit every year.

Condition: Keeping in a rather active manner.

Facilities: Making active use of general banking facilities.

Payment: Met obligations as contracted.

Commercial Morality: Satisfactory.

Bankers:-

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Public Bank (Hong Kong) Ltd., Hong Kong.

Standing: Satisfactory.

GENERAL

Having issued 100,000 ordinary shares of HK$10.00 each, Gempro HK Ltd. is jointly owned by Mr. Fazlal Hassan Ahmed, holding 50% stake; Mr. Abirin Zulaiah Ahmed Fazul Hassan, holding 20%; and Mr. Ali Sadaq, 30%. They are also directors of the subject. The first two have been in Hong Kong for a very long time and become Hong Kong ID Card holders. They have got the right to reside in Hong Kong permanently. The third shareholder Ali Sadaq is an India passport holder. It is likely that the shareholders of the subject are also residing in the subject’s operating address.

Business commenced in June 1990, the subject is a diamond importer, exporter and wholesaler.

The subject is dealing in the following products:-

· Fine loose diamonds, polished and cut diamonds;

· Gemstones & Jade;

· Rare, coloured gemstones and jade; &

· Semi-precious jewellery.

Its diamond products include fancy coloured diamonds, unusual rose cut and briolette cut diamonds, etc. It also trades in single-cut diamond, fullcut loose diamond, carat size diamonds, blue sapphire, ruby, etc. Products are chiefly imported from India, Thailand, Sri-Lanka, Belgium and Israel. However, India is its main supplying country. Loose diamonds are chiefly exported to China, India, Japan, Southeast Asia, Europe, the Middle East, etc. Business is rather steady. Regular customers and foreign suppliers have been maintained.

The subject’s business is chiefly handled by Fazlal Hassan Ahmed and Abirin Zulaiah Ahmed Fazul Hassan.

The subject owns its operating office located at the present registered address in Tsimshatsui, Kowloon, Hong Kong which had been mortgaged to Public Bank (Hong Kong) Ltd., Hong Kong, for securing general banking facilities.

On 3rd July, 2009, The Hongkong & Shanghai Banking Corp. Ltd. released the subject’s property as the subject had repaid all its debts.

The annual sales turnover of the subject ranges from HK$65 to 70 million. Business is profitable and keeps on improving.

On the whole, as the history of the subject in Hong Kong is about twenty-two years, consider it good for normal business engagements.

REMARKS

Property information of the company:-

Property Location: Flat A6 on 14/F. and Portion No. 47 of Main Roof, Hankow Centre, 47 Peking Road, 4A Ashley Road and 1C Middle Road, Kowloon, Hong Kong.

Owner: Gempro HK Ltd.

Date of Purchase: n.a.

Purchased Price: n.a.

Incumbrances:-

Date of Mortgage	Amount Consideration	Mortgagee	Nature
17-09-2007	-	Public Bank (Hong Kong) Ltd., Hong Kong.	Mortgage to secure general banking facilities

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.72
UK Pound	1	Rs.88.60
Euro	1	Rs.71.34

INFORMATION DETAILS

Report Prepared by :

PDT

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.